Thinking of buying
a home in the UK but don’t have a British passport?
Don’t worry, you’re not alone. Many foreign nationals choose to buy property in the UK, and there are a number of lenders who offer mortgages to non-residents.
First, you’ll need to meet certain eligibility requirements. These vary from lender to lender, but typically include having a good credit history, a stable job, and a sufficient income. You’ll also need to be able to provide a down payment.
The application process for a foreign national mortgage is more complex than for a UK resident mortgage. This is because lenders need to verify your identity, income, and employment status. You’ll also need to provide additional documentation, such as a copy of your passport and visa.
If you’re not sure where to start, it’s a good idea to work with a mortgage broker. They can help you find a lender that offers mortgages to foreign nationals and guide you through the application process.
So, if you’re a foreign national and you’re dreaming of owning a home in the UK, don’t give up. With a little planning, it’s possible to achieve your goal.
Which Lenders
are open to lending to foreign nationals?
Many high street lenders, such as Barclays, NatWest, and HSBC, offer mortgages to foreign nationals, but they each have their own specific requirements.
For example, HSBC only lends to borrowers with a minimum income of £75,000 and an LTV of 75% or lower, Barclays requires a minimum of £100,000 in savings or investments (or equivalent in foreign currency), and Halifax only offers mortgages to borrowers who have been in the UK for at least five years.
In addition to the high street lenders, there are also a number of specialist lenders who offer mortgages to foreign nationals. Their rates and criteria vary, but a mortgage broker can help you compare different lenders and find the best deal for your needs.
What are the
rules for foreign nationals?
Lenders need to be sure that you’re able to repay your loan, even though you’re not a UK citizen. So, they’ll ask you a few questions to assess your risk.
What type of visa do you have?
Not all visas are acceptable to mortgage lenders. For example, student visas are often rejected because they imply a short stay. Working visas are more likely to be accepted, as they show a longer-term commitment to the UK.
How long is left on your visa?
The longer your visa is valid, the better your chances of approval. This is because it shows that you’ll be in the country long enough to repay the loan.
How long have you been in the UK?
Many lenders require applicants to have lived in the UK for at least one year. Some lenders even require a five-year residency period.
Where will the money for repayments come from?
If you have a salary from a UK job or self-employment, that’s a good sign. If you plan to live overseas and use foreign income to repay the loan, the country, currency, and company you work for will influence your approval and interest rate.
FAQs.
Can I get a mortgage with someone who doesn’t live in the UK?
Yes, but they’ll need to have a visa that’s acceptable to the lender and meet all the other requirements.
Can refugees buy property in the UK?
Most lenders require applicants to have been working in the UK for over a year, so refugees will need to get refugee status and the right to work in the UK first. Once they’ve been working in the UK for a year and have the right paperwork, they can apply for a mortgage as long as they meet all the other requirements.
Can an American get a mortgage in the UK?
Yes. Many lenders, including NatWest and Metro Bank, accept US citizens for foreign national mortgages.
A mortgage broker can help you find the right lender for you.
Mortgages With
Foreign Income
Getting a mortgage with foreign income can be difficult but not impossible.
Some lenders will consider mortgages based on foreign income, but it’s not common, and the criteria vary depending on your circumstances and the currency.
In 2016, new rules were introduced that require lenders to monitor exchange rates for borrowers with foreign currency mortgages and warn them if rates exceed certain limits. This extra work and cost has led some lenders to stop offering foreign currency mortgages, making it even harder to get one.
Only a few lenders offer these mortgages, and they have strict criteria. You’ll also need to be aware of the risks associated with foreign currency mortgages, such as exchange rate fluctuations.
If you’re thinking about getting a foreign currency mortgage, it’s important to talk to a qualified mortgage advisor. They can help you find a lender that is willing to lend to you and get you the best possible rate.
Contact.
LET’S TALK.
To discuss how we can help you please contact us using the details below for an initial chat or to arrange an appointment with one of our Advisors in Cornwall.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED UPON IT.